New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-08-11
CAUSE AND CONSEOU ENCE.

1t is now a full year since the disability Of
Mr.. Manning led t. radical change in the
financial policy of the Government. The
effect of that change can be stu led in bust
ness disorders and disasters Of sin
gular magnitude President CIeve-
land began by leaning upon Mr..
Tilden as his fina cial adviser; he has ended
by leaning upon Mr.. Fairchild and between
the two there is wide difference. SO long
as Mr. Tilden's influence directed the Treas
ury, through his especial representatives. Sec
rotary Manning and Treasurer Jordan, in
fation was Stunned, no attempt was tolerated
to force hot-house activity in business Tor
the sake of partisan advantage, and the fiscal
policy pursued was shrewd and sound. When
Mr.. Tilden's influence ceased TO control, Mr..
Cleveland yielded to the Requirements of
Democratic spectators and jobbcrs, who con-
WINGED him that in order to secure support
In the elections, it was necessary to create a
business "bOom" Then came imitation, OF
which the consequences can now be surveyed.
Stockholders of the Cincinnati, Hamilton
and Dayton and creditors of Ives s. Co. do
not survey them dispassionately. But
neither do the creditors Of the
Fidelity Bank and other parties concerned in
the Chicago wheat corner find it easy to re-
gard the situation with calmncss San Fran
cisco is much disturbed also, because the
business of that city and of the State suffers
from paralysis produced by the wheat spccu-
lation there Galveston and Ncw-Orcans
mourn the fall of leading traders, including
the president of the National Cotton Ex-
change. The leading house in the coffee
trade is IN ruins, and another failure dis
closes a collapsed corner in pruncs.
But the tendency to excessive speculation
has yielded large crop, which has not been
entirely harvested as yet. There is great
corner in tobacco, and its present attitude may
be inferred from the angry dcnunciatiOns with
which parties interested meet the official re-
port Of the Agricu tural Bureau regarding the
yield. There is great speculation in po.k,
tho end of which farmers and traders wish
they were able to fOrcsee. There is another
gigantic operation In cottonsCed OIL and all
another in petroleum, and projected corner
in silver bullion, and behind all these and
others too numerous to mention, far exceed
ing and ovcrshadowing all, there is the cnor-
nous speculation in real estate, which has
duuCu tuOuoduuo vi W Vic dp6ltGdC
of mortgage Indebtedness within single year.
Whether these end in collapse or in so-caIlcd
success, in either case they must do great
injury to the substantial bus ness and pro-
ductive industry Of the CO ntry.
There is not financial teacher or student
Of any school whatever who docs not recog-
nize the fact that sudden and large expansion
Of the circulating medium powerfully stimu-
lates the speculative force. Hope springs
eternal In the human breast, and the desire TO
get suddenly rich, and therefore the gambling
propensity may be counted upon as a per-
petual force, always threatening the ruin Of
civilized society unless kept within check.
The sudden expansion of the currency re-
moves checks and sets that force in destructive
operation. When Democratic SPECTATORS
convinced the President that currency in
hation was necessary. in order to insure
Democratic success in Congressional and State
elections last fall, and Secretary Fair
child accordingly expanded the circulation